A request from TCU Place for short-term financial support is heading to Saskatoon city council for approval.
TCU Place says it needs a short-term line of credit of up to $3 million after seeing the number of events it holds reduced by 75 to 80 per cent in the last 16 months due to the COVID-19 pandemic.
Tammy Sweeney, TCU Place’s CEO, told the city’s governance and priorities committee Monday that TCU Place has reduced expenses by $5.2 million.
She said TCU Place does have close to $8 million in investments, but there are penalties for cashing those in early.
“We (also) lose out on the interest,” Sweeney said.
“The penalties outweigh what we would pay in interest to the city.”
Kerry Tarasoff, the city’s chief financial officer, told the committee that the line of credit is seen as an investment by the administration.
“That would bridge the Arts and Convention Centre until such time investments mature and their revenues rebound with the reopening of the facility after operations ceased during the COVID-19 pandemic,” he said.
“The administration believes there is no risk with this line of credit, as the investments of $8 million owned by TCU Place would be used as security for the repayment of any outstanding funds.”
Sweeney said that though the centre is requesting a line of credit of up to $3 million, she doesn’t expect to use more than $500,000 as revenue increases in the coming months.
“We have a few small concerts, but it really will be back to 60 to 70 per cent of revenue by October,” she said.
The committee unanimously approved the request, which now heads to city council for final approval.